Date: December 11, 2003

I started entering the stock market seriously after reading a couple investment books. I have to take a different approach other than what I did three years ago.

At that time, I felt that SUNW was too good a stock though it kept falling. I could not wait to buy certain shares though I owned some through the company ESPP program. After I bought the shares, the stock fell even further without a while; however, I just thought it would go up without considering the overall bear market and down business environment. To make it worse, I put all the eggs in one basket SUNW. Moreover, I didn't have a portfolio to monitor my position. All the bad things together, I was just a stupid guy without a direction in investment.

O'Neil's book The Successful Investor gives me great guide on how to choose the best stock and how to analyze the chart, however, it's just a theory. I still pay a fortune to learn a few good lessons while in actual trading.

First, I am not patient and want to make a fortune right away. When I saw a stock going down, I could not wait but sell it. Furthermore, when a stock was going up before the market was open, I placed a market order without careful analysis. What's a pity!

Stock: ____________________________

Investment Checklist for Buys (All must be checked in order to buy):

1. Institutional Sponsorship Present

2. Leading Industry Group

3. Technical Analysis of the Stock

Chart Price Pattern

Relative Price Strength

4. Quarterly Earnings and Sales Growth

5. Average Volume

6. Market has produced “follow-through day” and confirmed rally

7. Pivot Point ______

Net return on Investment ___________%_ ;

Purchase Prices________________________________

Average Qty/Price ________________________________

Stop Prices ________________________________

Honglin Su

2003-12-11T09:41:37